Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Narberth. Clearly, the length of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the residence has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Narberth have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Narberth lease extension. Holding off the cost now only increases the price you will eventually have to pay to extend your lease
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The conveyancers that we work with handle Narberth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 9 months of lengthy negotiations with the freeholder of her studio apartment in Narberth, Megan commenced the lease extension process just as her lease was coming close to the crucial 80-year mark. The legal work completed in March 2008. The freeholder’s charges were restricted to about 650 GBP.
In 2012 we were contacted by Mr A Sharif who, having moved into a one bedroom flat in Narberth in January 2011. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Identical residencies in Narberth with an extended lease were in the region of £242,600. The mid-range ground rent payable was £45 invoiced yearly. The lease ended in 2092. Having 67 years remaining we calculated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of fees.
Last year we were phoned by Mr and Mrs. O Miller , who bought a one bedroom apartment in Narberth in March 1999. We are asked if we could estimate the premium could be for a ninety year lease extension. Identical flats in Narberth with 100 year plus lease were in the region of £280,000. The average ground rent payable was £55 collected monthly. The lease ran out on 23 August 2103. Considering the 78 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.